Affirmative Insurance Holdings (AFFM)

Affirmative Insurance Holdings, Inc., through its subsidiaries, engages in the design, sale, underwriting, and servicing of non-standard personal automobile insurance policies for individual consumers in the United States. It offers a range of liability-only polices that comprise bodily injury liability coverage, property damage liability coverage, and personal injury protection coverage and/or medical payment coverage. The company also offers full coverage policies, which include collision coverage; comprehensive coverage for damages to the insured vehicle as a result of causes other than collision, such as theft, hail, and vandalism; and towing, rental reimbursement, and special equipment coverage. In addition, it sells third-party non-standard personal automobile insurance policies; complementary insurance products, including motorcycle and recreational vehicle coverage, motor club memberships, vehicle protection, travel protection, and hospital indemnity, as well as life, health, and disability insurance policies; and ancillary non-insurance products and services, such as prepaid cellular telephones, prepaid local telephone, long distance calling card services, and income tax services. Affirmative Insurance sells its insurance products through its retail stores, independent agents, and Internet, as well as through a call center and finance company. As of December 31, 2007, Affirmative Insurance Holdings had 221 owned stores and 35 franchised retail stores. The company was founded in 1998 and is based in Addison, Texas.

For the nine months ended 30 September 2006, Affirmative Insurance Holdings, Inc.'s revenues decreased 6% to $271.1M. Net income decreased 17% to $16.1M. Revenues reflect a reduction in commission income & fees due to the Group's insurance companies retaining more premiums and a change in the fees charged. Net income also reflects an increase in amortization charges due to non-competition agreements and higher interest expenses.